China Launches Investigation into PVH Group Over Xinjiang Cotton Boycott

The Chinese government has initiated an investigation into PVH Group, the American fashion conglomerate behind renowned brands Calvin Klein and Tommy Hilfiger, for ceasing cotton purchases from the Xinjiang Autonomous Region.

China’s Ministry of Commerce announced the investigation, citing allegations that PVH Corp. has violated normal market trading principles and taken discriminatory measures by stopping business with Chinese companies related to Xinjiang products.

The Department of Commerce stated that PVH Group’s actions have damaged the legitimate rights and interests of Chinese enterprises and endangered China’s sovereignty. The ministry has requested that PVH Group submit written materials and supporting documentation explaining any discriminatory measures against relevant products over the past three years within 30 days.

The Chinese government emphasized its commitment to promoting a high level of external opening-up, maintaining the multilateral trading system, and safeguarding the legitimate rights and interests of various market entities. China has consistently been cautious in dealing with ‘unreliable enterprises,’ and the investigations target a small number of foreign enterprises.

Global fashion companies have stopped using cotton produced in China’s Xinjiang Autonomous Region since 2020 due to suspicions of “forced labor by Uyghurs.” China maintains that there was no forced labor by Uyghurs.

China’s Xinjiang Autonomous Region has been at the center of the controversy surrounding cotton production. The region’s cotton industry has faced allegations of forced labor, prompting many global fashion companies to boycott Xinjiang cotton.

The investigation into PVH Group marks a significant development in the ongoing tensions between China and foreign companies over the Xinjiang cotton issue. The outcome of the investigation is likely to have implications for the fashion industry and China’s relations with foreign enterprises.